the answee is C. 6 units, but can someone explain to me why?

Question

Question

business economics

Answer 1

Answer #1

Profit is maximized where P = MC

MC of 6th unit = 37- 30

= 7

MC of 7th unit = 46- 37

= 9

MC of 7th unit is larger than price. Thus it would not be profitable to 7th unit.

While in the case of 6th unit MC is less than P.

Hence, it would be profitable to produce only 6 units

Answer: (C)

Answer 2

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